Timis seeks back-door listing on ASX

Romanian businessman Frank Timis is attempting a back-door listing of his oil and gas exploration vehicle African Petroleum in Australia, two months after regulators blocked the company from joining London’s Alternative Investment Market.

Australian Stock Exchange-listed
Global Iron
– chaired by
Tony Sage
, a close friend of Mr Timis – announced yesterday it would acquire African Petroleum in a reverse takeover worth up to $500 million.

African Petroleum, which owns promising oil exploration rights in Liberia, was due to list on the AIM late last year. But AIM regulators told the company’s adviser, UK-based Mirabaud Securities, the £60 million float could not go ahead if Mr Timis had a position on the board. The decision was based on his role at Regal Petroleum, which suffered a collapse in its share price in 2005 after claims of a vast oil find in Greece were proved to be untrue. Mr Timis was then chief executive.

After a lengthy inquiry,Regal Petroleum was fined £600,000 last November, the largest ever penalty issued by AIM.

The ASX said yesterday it would thoroughly scrutinise the proposed deal with Global Iron and Mr Timis’s involvement.

ASX corporate relations manager Matthew Gibbs said admission to the stock exchange was at its discretion, and it could impose conditions as it saw fit.

The deal between Global Iron and African Petroleum is conditional upon Global Iron raising no less than $130 million and up to $230 million in a share placement.

Mr Timis is expected to become executive chairman of the newly merged entity.